is then modified to include a collateral constrained consumer. We show that collateral constraints may affect the level …

nominal interest rate), in a general-equilibrium model of asset pricing and risk sharing with endogenous collateral … constraints of the kind proposed by Geanakoplos (1997). The existence of collateral constraints allows our model to capture the …-bank purchases raise the price of the asset, owing to binding collateral constraints, the effects need not be the ones commonly …

of financial leverage. The degree of leverage is shown to be an important factor in the amplifying role of collateral … the interactions between investment and collateral price, the endogenous accumulation of collateral asset is shown to be … an alternative channel through which the business cycle effects of collateral constraints are generated. On the other …

I develop a dynamic model of optimal funding to understand why financial assets are used as collateral instead of being … non-investing firms and, thus, is optimal. Frictions in asset markets lead to an illiquidity discount and a collateral …

incorporates an exogenous shock that sharply increased the cost of external financing. The evidence supports collateral …. Conversely, lack of collateral may prevent them from doing so. We bring evidence from a difference-in-difference approach to shed … light on this central question in corporate hedging theory. We use hand-collected data from the oil and gas industry that …

We study the effects of collateral constraints in an economy populated by investors with nonpledgeable labor incomes … production crises in the economy. Furthermore, stock prices have large collateral premiums over nonpledgeable incomes. We derive …